Petronet LNG has issued Force Majeure notices following the ongoing war in the Middle East, which has prevented vessels from safely transiting the Strait of Hormuz to reach QatarEnergy’s loading port. Consequently, Petronet has notified its major off-takers—GAIL, IOCL, and BPCL—of potential supply disruptions under existing agreements. The company is actively monitoring the situation, but the financial impact of this ongoing event cannot yet be estimated.
Impact of Middle East Hostilities on Operations
Petronet LNG Limited has formally announced a critical operational challenge stemming from the recent and ongoing war in the Middle East region involving Iran and Israel. Due to severe security concerns, maritime navigation through the Strait of Hormuz (also referred to as the Gulf of Hormuz) to the loading port of QatarEnergy at Ras Laffan is currently unsafe for vessels.
Issuance of Force Majeure Notices
In response to the prevailing security situation and the material risks to shipping, Petronet LNG took immediate steps to mitigate exposure:
- Notice to Seller: Petronet issued a Force Majeure Notice to QatarEnergy concerning its own LNG tankers, specifically naming Disha, Raahi, and Aseem.
- Seller’s Action: QatarEnergy, acting as the Company’s seller, simultaneously issued a notice indicating a potential event of Force Majeure due to the regional hostilities.
- Notice to Off-takers: Consequently, Petronet issued corresponding Force Majeure notices on 3rd March 2026 to its primary off-takers: GAIL (India) Limited, Indian Oil Corporation Limited (IOCL), and Bharat Petroleum Corporation Limited (BPCL), under the relevant Gas Sale and Purchase Agreements.
Insurance and Outlook
It is noted that Acts of War are explicitly excluded under the Business Interruption Insurance covers secured by Petronet LNG. The company is closely monitoring the rapidly developing situation. As the Force Majeure event is currently ongoing, the likely impact cannot be estimated at this point of time. Petronet assures the stock exchanges it will provide updates on any material developments as they occur.
Source: BSE
